The basics
Inflation is the general rise in prices over time. If a basket of goods cost 100 birr last year and costs 115 birr now, inflation is 15%.
Things to watch
A falling inflation rate is easy to misread. If inflation drops from 15% to 12%, prices are still rising, just more slowly.
What to do next
For your business, inflation raises costs for materials, wages and rent. Review your prices on a regular schedule and keep records of cost changes.
